Category Archives: Financial Advice

3 Ways to Save on Back-to-School Basics

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It’s hard to believe, but it’s time for kids to start heading back to school. Back-to-school season means shopping for new supplies and whether it’s a backpack, a lunch box, or a new wardrobe, it can be a pricey time for parents. Bankrate has reported that on average, parents spend up to $670 for one child on back-to-school gear. Here are 3 ways you can save on your school shopping, while making sure your kids have everything they need.

Clean out the closets.
The key to not overspending is figuring out exactly what your children need, and not just what they want. Take a detailed inventory of what they have, what is in good condition, and what still fits. Then, you will know exactly what you need to purchase when you hit the stores. Although it may be fun for your kids to pick out a new backpack, if last year’s bag works, tell them the money can be used on something else that they actually need.

Buy in bulk.
Do your children have a favorite lunch item or snack? If so, head to the nearest warehouse store and buy these goodies in bulk. Whether it’s goldfish or peanut butter, you’ll be glad to have enough when making their meals this school year. Also, if you have multiple children, these stores are an excellent option for stocking up on supplies for every kid.

Check out consignment stores, clip coupons.
Many local consignment shops have great name-brand items at reasonable prices. Back-to-school season is a popular time for them as well, so hit up the secondhand shop to see what new inventory they’ve gotten in. Additionally, pay attention to sales and coupons in store circulars. Even small savings can help in the long run when you’re trying to stay on budget while buying all your children’s new school gear.

Want to earn cash back on all your back to school purchases this year? Apply for a Visa Signature Cash Plus Credit Card from First Financial! You’ll earn 1% cash back, no restrictions.*

*APR varies up to 18% for purchases, when you open your account based on your credit worthiness. The APR is 18% APR for balance transfers and cash advances. APRs will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fee. Other fees that apply: Cash advance fee of $10 or 3% of the total cash advance amount—whichever is greater (no maximum), Balance transfer fee of $10 or 3% of the balance—whichever is greater (no maximum), Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

Article Source: Wendy Bignon for CUInsight.com

Weekend Money Traps to Avoid – Round 2

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When Friday arrives after a busy week and we gear up for free time over the weekend, it’s easy to fall hard into money traps. Here are some more money traps to consider this weekend and ways to avoid them.

The road trip: Doesn’t hitting the open road with a group of friends sound like a fun idea? While this is often a popular way to take a quick trip over the weekend, consider how much you will actually spend. First off, there’s the cost of driving. It can cost you up to $5 an hour on the gas alone, along with the eventual expenditures resulting from wear and tear on your vehicle. Then, there’s the food. Chances are while on the road, you’ll be eating fast food, which is not the best use of your money. Additionally, you will more than likely stay in a hotel along the way that can cost at least $75. So, if you do decide to take off on a weekend road trip, make smart choices. Decide how much you want to spend on gas and only travel as far as that will take you. Pack your food to save money (and the extra pounds the junk food will add to your waistline). Also, cut out the hotel cost and consider traveling to places where you have family and friends so you have a free place to crash.

The big event: Are you a sports fan? Do you love catching the hottest concert? These things are a lot of fun, but they will certainly cost you. Not only are the tickets expensive, but the refreshments and food at most venues are priced ridiculously high. Also, unless you live in a bigger city, chances are these big-ticket events aren’t actually taking place in your hometown. Therefore, not only will you have to buy the ticket, you’ll also spend money on travel and possibly hotel accommodations. Before you purchase your ticket, consider looking into local music shows or sporting events. While they may not be the hottest things out there, you can still have a very similar experience while supporting local artists or athletes.

The mall: We all know shopping can get expensive – but consider the mall the absolute worst place for weekend money traps. Not only is there an endless amount of stores where you can waste your money, there is also a food court and often a movie theater. The mall can literally be a one-stop shop for blowing your money and breaking your budget. While it can be fun to hit the mall where there’s something for everyone – before you do, think about what you actually need. Does your child need a new pair of shoes? If so, go directly to that store and nowhere else. If you’re just looking for a shopping experience, then hit the grocery store instead and get what you really need for the coming week.

If you missed the first article on weekend money traps, click here.

Article Source: Wendy Bignon for CUInsight.com

4 Financial Items to Review this Summer

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Summer is the perfect time for vacations at the beach and weekends at the pool. It’s also a great time for assessing your financial health. Things are generally a bit slower in summer, so use your time wisely and take a minute to review these four important financial items.

Emergency Fund

Before you fork out significant dough for that condo on the beach, make sure you’re not dipping into your emergency reserves. It’s impossible to know what unexpected things may pop up in life, but having a financial cushion is crucial. A general rule of thumb is to maintain about four months’ living expenses in your emergency fund. If you don’t have that, don’t even think about taking a summer vacation.

Credit

How much do you actually know about your credit? Do you know your credit score? Summer is the perfect time before the holiday spending season to research where you stand financially. Equifax, Experian, and TransUnion all offer free credit reports, so do your homework before opening up another credit card.

Retirement Savings

You may not pay much attention throughout the year to contributions to your retirement savings, but summer is a great time for a review. Are you satisfied with how much is being moved from your paychecks to your retirement fund? Is your company matching your contribution? Don’t wait until it’s too late to be in the know. If you are able, contribute as much as you can to your financial future.

General Budget

It can be hard during the busiest times of the year to truly evaluate our spending habits. We move from one workday to the next and do the best we can to budget. During the summer, sit down and give your finances a good look. Are there areas in your life where you can really cut back? If you can make adjustments during the summer months for the rest of the year, you can potentially be putting extra money back in your pocket.

Article Source: Wendy Bignon for CUInsight.com

 

3 Tips When You’re Living Paycheck to Paycheck

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If you’re currently living paycheck to paycheck, when payday hits you think you have all the money in the world. But then, after bills are paid and groceries are bought, there is probably very little money for anything extra. Keep in mind, that even though it may seem stressful, if you follow these tips and save, you can make it work!

Trim the fat.

Take a closer look at things you pay for that you don’t actually NEED. For example, maybe you have over 200 television channels in addition to Netflix. Why would you pay for an abundance of channels you do not actually ever watch? If you cut your package down to the bare minimum; keeping only the basic channels it may lower your monthly bill by close to $100.

Cut those coupons.

Unfortunately going grocery shopping is not what it used to be. It is next to impossible to leave the store without spending at least $100. Therefore, it is important you do everything you can to cut food costs. One way to do this is to use every coupon you can. You don’t have to be an extreme coupon-cutter to take advantage of the savings because every little bit helps. Think about it- if you find a coupon for 75 cents off a bar of soap and you don’t use it, isn’t that like throwing money away?

Come up with a game plan.

When you get paid, do you sit down and make an actual budget? This is something many people struggle with – but when you actually do it, it does make a difference. Give yourself an allowance for the “extras,” even if it’s $15-$20. It takes willpower, but it’s important to not get ahead of yourself if you’re short on cash. The feeling of having less of a financial burden and therefore less stress will be worth it in the end, even if you have to pass on the occasional happy-hour or dinner out with friends.

Article Source: Wendy Bignon for CUInsight.com

 

3 Bad Habits to Break if You Want More Money in the Bank

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Even if you’re doing a good job of saving money, you probably didn’t start as early as you wish you had. If you’re still overspending your budget, there are probably some bad habits you need to break. Here are a few things you should stop doing to save more money.

Waiting for a bigger paycheck before you start investing.

We’ve all probably thought about the things we would be able to do if we made more money. Some of these things make sense, but others are just plain wrong. Investing in your future is something you should never put on hold. Thanks to compound interest, you have a great way to prepare for retirement, and the earlier you start – the better.

Questions about retirement savings or investments? To set up a complimentary consultation with the Investment & Retirement Center located at First Financial Federal Credit Union to discuss your savings goals, contact us at 732.312.1534, email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com, or stop in to see us!*

Not paying attention to spending habits.

If you don’t know where your money is going, you definitely have a spending problem. You should keep track of every dime you spend, so you can find out ways to cut back on unnecessary items and save.

Dipping into savings.

Whether it’s a retirement account or an emergency fund, leave it alone. If you take money from your IRA, you’ll suffer penalties and taxes and it’ll damage the progress you’ve made with your compound interest. If you take from your emergency fund, you’ll be hurting when that emergency arises. Keep this in mind before you spend all that you’ve put away.

*Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

Article Source: John Pettit for CUInsight.com

Keep or Shred: Spring Cleaning for Financial Documents

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Along with spring cleaning our closets and homes, it’s also important to take a look at that pile of papers gathering dust in the kitchen drawer or your home office. Are you holding onto financial documents that can be shredded, or should you continue to (carefully) keep those records on hand? Here are four types of financial documents and tips for whether to keep them or shred them.

Credit Card Statements: ATM or deposit receipts can be tossed after the transaction is recorded, but credit card statements should be kept until a payment is made and appears on the next statement. Receipts for anything purchased on your credit card should also be kept until the statement arrives so you can confirm you were charged the appropriate amount.

Student Loans: When you originally took out your student loan you were given a master promissory note. This document shows how you promised to pay your loan and any accrued interest and it should be kept securely until your loan is completely paid off.

Mortgage/Lease: Because many mortgage lenders now allow for electronic payments, most documents associated with your home will be available anytime on their webpage. However, if you have paper copies of your closing documents – you may want to file these away for safe keeping anyway, and to have a hard copy on hand. If you are leasing your residence, transaction histories may not be available online, so hold onto your lease and any record of rent payments made. That way if there is a dispute with your landlord, you will have the necessary detailed documents handy.

Car and Health Insurance: Many insurance companies will send policies via email or will allow you to create an account on their website and access your secure documents at your convenience. If this is the case, there is no need to keep any paper copies that are mailed to you. If there isn’t an electronic copy, file away your policy information until the next year when the new plan information arrives. Life insurance policies are an exception and should be filed away forever.

Article Source: Wendy Bignon for CUInsight.com